- Acceleration of research and development (“R&D”) of novel anti-infectives
- 100 employees will join Evotec
- Sanofi will license more than 10 infectious disease (“ID”) R&D assets
- Sanofi to provide significant support to Evotec including a one-time, upfront payment of € 60 M to support progression of a next generation anti-infectives portfolio
Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced having signed a transaction agreement with Sanofi to integrate Sanofi’s infectious disease unit into its organisation. Pursuant to this agreement, Evotec will also licence-in the majority of Sanofi’s infectious disease research portfolio and initiatives. This successfully seals the exclusive negotiations between the two companies and completion of the required legal social process, initiated on 08 March 2018. The transaction will be closed in the coming weeks and remains subject to customary approvals and conditions, including the approval by regulatory authorities in France.
Evotec will accelerate the infectious disease research pipeline development and initiate new open innovation R&D initiatives in anti-infectives. Going forward, Evotec will engage in open collaborations with other pharmaceutical and biotechnology companies, foundations, academia and government agencies to further accelerate research in infectious diseases. The initial focus areas will be on antimicrobial resistance (“AMR”) and superbug infections, Tuberculosis and Malaria, as well as the creation of novel antiviral therapies with new mechanisms of action.
Dr Werner Lanthaler, Chief Executive Officer of Evotec, said: “With the signing of this transaction, Evotec will have created the highest qualified translational footprint in infectious disease research globally with approx. 180 scientists. We warmly welcome the Sanofi employees to Evotec and look forward to working with them on this very important mission. Together we are well-positioned to become the global drug discovery and development partner of choice in this important therapeutic category. We invite more companies, academic institutions, governments and foundations from around the world to help us advance new novel anti-infectives toward the market.”
As part of the transaction, Sanofi will pay € 60 m upfront and will provide Evotec with additional, significant long-term funding to ensure the progression of the highly innovative anti-infectives portfolio. Sanofi will retain certain option rights on the development, manufacturing and commercialisation of the anti-infective products resulting from the licensed assets. As part of the transaction, Evotec will add and integrate 100 highly qualified employees into its global drug discovery and development operations. The positions from Sanofi will be transferred with certain, specific long-term commitments of employment. Evotec will continue to operate in Lyon, taking advantage of the location’s scientific and medical excellence in infectious diseases.
The transaction will result in increased operating income as well as increased R&D expenditure and will be slightly accretive to Evotec’s EBITDA for the next five years.
ABOUT INFECTIOUS DISEASES
Infectious diseases are caused by bacteria, viruses, fungi or parasites and can be spread, directly or indirectly, from one person to another. Treatments for infectious diseases include antibiotics and anti-viral medications. Today, infectious diseases propagated by bacteria are becoming increasingly resistant to many antibiotics and any use of antibiotics reduces the effectiveness of these drugs for other patients. The World Health Organization (“WHO”) has deemed antibiotic resistance to be one of the three greatest threats to human health today. Almost a million people die of resistant infections a year. It is also estimated that by 2050, 10 million lives a year and a cumulative 100 trillion dollars of economic output are at risk due to the rise of drug resistant infections, if solutions to this problem are not identified now. Thus, there is a critical need to research and develop medical solutions to combat antibiotic resistant bacteria.
ABOUT EVOTEC AG
Evotec is a drug discovery alliance and development partnership company focused on rapidly progressing innovative product approaches with leading pharmaceutical and biotechnology companies, academics, patient advocacy groups and venture capitalists. We operate worldwide providing the highest quality stand-alone and integrated drug discovery solutions, covering all activities from target-to-clinic to meet the industry’s need for innovation and efficiency in drug discovery (EVT Execute). The Company has established a unique position by assembling top-class scientific experts and integrating state-of-the-art technologies as well as substantial experience and expertise in key therapeutic areas including neuroscience, diabetes and complications of diabetes, pain and inflammation, oncology and infectious diseases. On this basis, Evotec has built a broad and deep pipeline of more than 80 partnered product opportunities at clinical, pre-clinical and discovery stages (EVT Innovate). Evotec has established multiple long-term discovery alliances with partners including Bayer, CHDI, Sanofi or UCB and development partnerships with e.g. with Sanofi in the field of diabetes, with Pfizer in the field of tissue fibrosis and Celgene in the field of neurodegenerative diseases. For additional information please go to www.evotec.com and follow us on Twitter @EvotecAG.
Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this release. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.